THE ECONOMICS OF WASTE IN BUFFALO Edward A. Sundquist State University of New York at Buffalo Law Student Waste is big business. The World Bank estimates in the U.S. alone, we generate 5.5 pounds of municipal solid waste per person per day and internationally, 1.3 billion tons per year. i It’s no wonder that in New York, businesses involved with recycling, reuse, and remanufacturing of waste generate a total of $10 billion dollars in gross receipts.ii The economics of waste and recycling is staggering, but it begs the question of how our local economy is dealing with waste and reducing, reusing, and recycling the materials. This report looks at the economic impacts of Buffalo’s various waste handling programs. UNDERSTANDING THE LOCAL LEGAL CONTEXT In 2011, Mayor Byron Brown announced a new recycling effort meant to promote and increase recycling habits of city residents and save on waste costs. The plan was to give each household a green cart that would allow residents to recycle more than before and alongside with regular trash. The initiative was accompanied with a full-time recycling coordinator for the City, new laws requiring the use of recycling totes, and a host of educational and practical programs to increase recycling of uncommon itemsiii. This program was slated to reduce recycling costs for the city from 1.9 million per year to 1.2 million per year. The city was also expected to raise collection revenue from $480,000 to $960,000 and increase recycling rates 8% to 16%, with a goal of reaching the national average of 34% by 2016.iv To compliment this initiative, the City added the following codes v to improve recycling, both which carry a Class C Fine of $52.50 per infraction: Chapter 216-15 – Improper Use of City Provided Containers for Garbage and Recycling: Recycling containers that have items that are not recyclable, and garbage totes that have items other than regular household garbage are considered to be improper uses of the containers provided by the City. Chapter 216-15 –Failure to Use City-Provided Containers: Each property must use city-provided totes and recycling containers provided by the City of Buffalo. 1 Additionally, New York State has laws on the recycling of private residential and private/public businesses. The issue with these laws is the general lack of enforcement by the City on residential properties. Many people are unaware of the mandate by the City, and most believe it is a voluntary process. There are no incentives to city residents and additionally, there is no enforcement for business recycling. This has translated into big loses for the City, as it currently loses $3 million per year on trash collection services.vi According to the City of Buffalo, the city-wide recycling rate is as followsvii: YEAR RATE* 2011 6.6% 2012 10.2% 2013 10.8% 2014 20% (Estimated)viii *Percentage of waste collected that consists of recyclable materials. Although the number has increased tremendously, the national average for recycling in cities is approximately 25%-34%. A 2012 study by the Partnership for the Public Good found the City saves $70,000 to $100,000 annually for every 1 percent increase in the recycling rate. ix Additionally, as part of Mayor Brown’s plan, the City designated $472,106 for education and other recycling activities, but only $16,500 has been spent. Currently, the City has contracted with a marketing firm to develop a Recycling Marketing and Outreach Strategy for the recycling program, but details about this, including costs, have not yet surfaced. Reduce.x Waste Management. Buffalo has several companies that work with the City and its residents to help reduce and manage solid waste as well as separate our recyclables. On a regional scale (northeast region) the impacts of waste reduction through single stream recycling and repurposing is significant. A 2009 study of waste management establishments across five northeast statesxi showed a total of 11,378 establishment involved in recycling or the use of recycled materials. 2 New York alone had 3,948 establishments. Below is the breakdown of establishments by category. Establishments by Type Of the New York establishments, there was a total of $10 billion dollars in gross receipts by these agencies. Gross Receipts by Type Of that, waste management establishments in the New York region indicted they employ 32,240 people and maintain a total annual payroll of approximately $1.4 billion dollars. Number of People Employed Per Type 3 Annual Payroll by Type Reuse. Textile and Clothing Reuse Program.xii As part of the City’s recycling plan, it has developed a collaboration called the Western New York Coalition for Donated Goods (WNYCDG). It was developed in May 2014 in response to requests by not-for-profits to receive non-traditional donation goods such as clothes and textiles. The City claims the coalition is to educate the community on the environmental and economic benefits of recycling and donating goods and provide easy access to donation opportunities. It is comprised of Goodwill, Salvation Army, Buffalo City Mission, AMVETS and Hearts for the Homeless. The effort was to address the fact the average person throws away 70 pounds of clothes per year or 9000 tons. Of that, 85% on average goes to a landfill and only 15% on average is donated or recycled. Member Organization Participation and Impacts.xiii Under this partnership, Buffalo’s City Mission described some of the practical and economic impacts of this program. Under this program, member organizations accept all kinds of goods that can be repurposed such as clothes, rags, tools, cords, toasters, silverware, and furniture, just to name a few. Gently used items are either resold or donated (in the case of the City Mission, some items are given to people leaving the shelter to stock a new apartment). Other items may be sent to other member organizations or sold to salvage companies which recycle the materials or provide clothing for third-world countries. Member organizations are paid by salvage companies per pound and utilize monies to fund the various member programs. Buffalo ReUse Organization.xiv The Buffalo ReUse program was developed as a way to save architectural gems of household building items that would have otherwise been sent to a landfill. As part of the organization, Buffalo ReUse is an organization committed to serving the community through collaboration, education and training, while promoting re-use, reclamation and recycling. The organization currently maintains a store front centered on these commitments. On its website, it suggests the following by using its store: Repurpose items into things they were not originally intended to be. Take an old window sash and use it as a picture frame or use several window sashes and make a mini green house. Reuse items for the same purpose they were originally intended to be. The pedestal sink that was removed from the Victorian style home will look great in your redesigned bathroom. 4 Recycle things that are no longer usable in any form. Take your old computer tower and monitor to an e-cycle drop off center so the parts can be dismantled and recycled. Recycle. Green Cart Recycling Initiative.xv Under the City of Buffalo’s current plan, it has provided green recycling bins as part of its single stream weekly recycling program. As part of this program The City contracts with a private contractor to collect all recyclables placed in green City totes. The City pays the contractor and undisclosed amount, but states that on average, the disposal rate of recycles is around $50 per ton. The City is rebated $5-$10 per ton. This results in an economic loss to the City. The Mayor proposes to increase our rate of recycling to 34% by 2016, but this would still result in an economic loss to the city as the cost of disposal and payments to private contractors are not being supplemented by solid waste fees collected by the City. Municipal Zero-Waste Plan & Recommendations Several Cities across the U.S. have created Municipal Zero Waste Plans that have resulted in significant economic savings. Buffalo could greatly benefit from cities like San Francisco, Austin, and Los Angeles, who have all created zero-waste plans that supplement traditional recycling programs and replace the need to increase solid waste fees. xvi Some examples of programs that could have an economic impact on Buffalo include: The creation of a plastics bag reduction ordinance similar to cities such as Washington, D.C. The ordinance would require businesses in the City to charge for the use of plastic bags, while providing discounts to customers that bring or use reusable bags and recycle old plastic bags. This also has significant impact on the environment as less plastic bags would end up in our waterways and on our streets while encouraging the use of paper bags that are biodegradable or reusable bags. Ban the sale of plastic water bottles on city property and encourage more recycling of materials at City special events. Utilize construction and demolition debris recovery programs that recycle wastes from city and residential projects rather than send wastes to landfills. This could also be encouraged by various 5 organizations in the City skilled in demolitions that salvage home parts rather than combine them into solid wastes. i The World Bank Group. Urban Development - What a Waste: A Global Review of Solid Waste Management, (2013), accessed at: http://go.worldbank.org/BCQEP0TMO0. See also, The Economist Online, Daily Chart – Rubbish Map, 7 June 2012, accessed at: http://www.economist.com/blogs/graphicdetail/2012/06/daily-chart3?zid=313&ah=fe2aac0b11adef572d67aed9273b6e55. ii Northeast Recycling Council, Inc., Recycling Economic Information Study Update, (2009), accessed at: http://www.containerrecycling.org/assets/pdfs/jobs/ReyclingEconomicInformation.pdf iii City of Buffalo, New York, Mayor Brown Unveils ‘Buffalo Green Cart Recycling’ an Expanded Recycling Initiative Designed to Increase Curbside Collection, Raise Revenue, and Stabilize Residential Garbage Fee, (2011), http://www.citybuffalo.com/Home/Leadership/Mayor/Archive_Press_Releases/2011Archives/December 2011/GreenCart. iv Email Communication with Susan Attridge, Recycling Coordinator, City of Buffalo, New York, 20 Nov. 2014. v City of Buffalo, New York, Local Laws For Refuse And Recycling Collection (2011), https://www.ci.buffalo.ny.us/Home/City_Departments/Public_Works_Parks_Streets/Stre et_Sanitation/LocalLawsForRefuseAndRecyclingCollection. vi Dan Tevlock, Buffalo’s Recycling Program Still Struggles, Investigative Post, May 27, 2014, http://www.investigativepost.org/2014/05/27/buffalos-recycling-program-stillstruggles/. vii Dan Tevlock, Buffalo’s Recycling Program Still Struggles, Investigative Post, May 27, 2014, http://www.investigativepost.org/2014/05/27/buffalos-recycling-program-stillstruggles/. viii Email Communication with Susan Attridge, Recycling Coordinator, City of Buffalo, New York, 20 Nov. 2014. ix Dan Tevlock, Buffalo’s Recycling Program Still Struggles, Investigative Post, May 27, 2014, http://www.investigativepost.org/2014/05/27/buffalos-recycling-program-stillstruggles/. x Northeast Recycling Council, Inc., Recycling Economic Information Study Update, (2009), accessed at: http://www.containerrecycling.org/assets/pdfs/jobs/ReyclingEconomicInformation.pdf xi States included Delaware, Maine, Massachusetts, New York, and Pennsylvania. xii City of Buffalo, New York, Reuse-City of Buffalo (2011), https://www.ci.buffalo.ny.us/Home/City_Departments/Public_Works_Parks_Streets/Stre et_Sanitation/Reuse. xiii Interview with Robbin Josey, Manager-Logistics, Buffalo City Mission, 20 November 2014. xiv Buffalo ReUse, Inc, Home (2014), http://www.buffaloreuse.org/. xv Email Communication with Susan Attridge, Recycling Coordinator, City of Buffalo, New York, 20 Nov. 2014 xvi For additional information on Municipal Zero Waste Plans, see: City of Austin, Texas, Zero Waste Strategic Plan (2008), accessed at http://austintexas.gov/sites/default/files/files/Trash_and_Recycling/Zero_Waste_Plan__full_version_-_Council_Adopted_w-resolution.pdf; see also, San Francisco Department of the Environment, Policy for Zero Waste: Environmental policy and legislation in San Francisco (2014), http://www.sfenvironment.org/zero-waste/policy. 6